The Project That Taught Us the Cost of Too Much Goodwill
Some projects begin with a vision.
This one began with excitement, trust, and what we believed was a shared goal: to transform a 64 sqm, 2-bedroom condominium unit at SMDC Wind Residences in Tagaytay into a beautiful, functional, income-generating Airbnb space.
Actual Photos Before Renovation: May 20, 2025.
The project was not small.
It involved a full interior fit-out and renovation: modular cabinetry, electrical works, painting, lighting, flooring-related works, bathroom improvements, furniture sourcing, fixtures, and project coordination. It was a full design-and-build commitmentโnot just a simple makeover, not just furniture placement, and definitely not a quick cosmetic refresh.
The agreed contract price was 1,345,849.00 but the client asks for more discounts (and freebies) and we agree at the final price of โฑ1,330,000. (NOTE: Only the client has the signed copy of the contract – in good will we did not saved the signed version.)
For a 64 sqm unit, that placed the project even below our basic benchmark package. Our basic design-and-build rate starts at โฑ22,000 per sqm, which would normally amount to โฑ1,408,000 for a unit of this size. That means from the very beginning, this project was already priced below the basic standard while carrying expectations closer to a premium Airbnb transformation.
And that is where the story really begins.
A High-Expectation Airbnb Project With a Tight Budget
The client came to us with so many ideas, a big dream: a stylish, functional, guest-ready unit that could perform well as an Airbnb.
Airbnb units are different from personal homes. They need to be durable, photogenic, easy to maintain, storage-efficient, guest-friendly, and memorable enough to stand out in a competitive rental market. Every corner matters. Every cabinet matters. Every fixture matters. The photos matter. The guest experience matters.
The client wanted thoughtful storage, custom cabinetry, upgraded furniture, beautiful lighting, functional kitchen planning, bathroom improvements, and design details that could elevate the unitโs rental appeal.
We understood the assignment.
From the very beginning, we understood the vision.
And to be honest, we liked it.
The challenge was never the design.
The challenge was the budget.
During the quotation stage, the client initially pushed for an all-in project budget of approximately โฑ1,100,000 for a complete 64 sqm Airbnb transformation.
At that time, we were transparent.
We explained that the budget was significantly below what would realistically be required to achieve the level of customization, renovation, furnishing, and Airbnb-ready finish being requested.
In fact, rather than forcing the project to fit an unrealistic number, we advised the client to obtain quotations from other contractors and suppliers for comparison.
We did not hard-sell.
We did not pressure them into signing.
We did not make promises that everything could be done for any budget.
Instead, we openly suggested exploring other options because we believed the expectations and budget were not yet aligned.
That recommendation alone should demonstrate that our priority was not simply winning the project.
Our priority was making sure the client made an informed decision.
After reviewing other options and further discussions, the project eventually proceeded under a revised agreement with a total contract value of โฑ1,330,000.
Even then, the project remained below our standard benchmark pricing.
For context, our basic Design & Build package starts at approximately โฑ22,000 per square meter.
For a 64 sqm condominium unit, that benchmark would be approximately โฑ1,408,000 before considering premium upgrades, Airbnb-specific requirements, extensive custom cabinetry, multiple design revisions, specialized furniture, and other project-specific requests.
In other words, the approved contract price was already below our standard baseline.
Yet despite this, we accepted the project in good faith.
Why?
Because we believed that through careful planning, transparent communication, value engineering, and close collaboration, we could still deliver a beautiful and functional result within the agreed budget.
What we did not anticipate was how significantly the expectations would continue to expand throughout the course of the project.
And that would eventually become one of the defining challenges of the entire engagement.
But before we talk about the challenges, we believe it is only fair to first show what was actually delivered.
After months of design revisions, planning, permit processing, procurement, fabrication, coordination, and construction, the unit was transformed from its original condition into a fully renovated Airbnb-ready space.
Watch the actual project transformation below.
The Design Phase That Became a Marathon
The design process officially began after the client paid the โฑ25,000 design fee.
Normally, our design lead time is around 2 to 4 weeks.
This project stretched for around 4 to 5 months.
Why?
Because the design kept evolving.
The client requested multiple revisions involving the kitchen layout, bedroom setup, storage placement, bathroom details, furniture selections, lighting, outlet placements, curtain/blinds treatment, and even feng shui considerations affecting the refrigerator, stove, sink, storage, and open spaces.
We listened.
We revised.
We adjusted.
We scheduled calls, answered questions, reviewed pegs, explained limitations, redesigned layouts, updated plans, and continued working until the client was satisfied.
By the 14th revision, the design was finally approved for implementation.
At that point, we had already poured months of professional design work into a project that was supposed to move much faster. And yet, we did not charge every revision as additional work. We treated many of these revisions as goodwill because we wanted the client to feel heard.
Looking back, this was the beginning of a pattern: every time we gave more, the baseline expectation moved higher.
Free Permit Documentation and PMO Coordination
After design approval, our team proceeded with the renovation application and technical documentation for SMDC/PMO processing.
This included detailed preparation of plans such as floor plans, elevations, reflected ceiling plans, and other documents required for renovation approval.
Again, this required time, technical work, coordination, and professional effort.
Again, we did not charge separately.
We continued to move the project forward even before full construction payments were fully settled because we wanted to be proactive. We wanted to help the client meet the timeline. We wanted to show commitment.
But in construction, goodwill has a cost.
Time has a cost.
Design labor has a cost.
PMO coordination has a cost.
Technical documentation has a cost.
And when those costs are repeatedly absorbed by the contractor, the project becomes financially and operationally strained before construction even begins.
Construction Started Under Pressure
The construction phase was formalized after the client sent the 50% down payment.
From there, the project moved into procurement, fabrication, site coordination, and actual renovation works.
But even during this stage, the process was not simple.
The project was affected by staggered payments, procurement complications, credit card processing issues, supplier coordination, and additional requests. There were instances where our team had to assist with purchases, troubleshoot payment issues, coordinate OTPs, process supplier transactions, and even use personal funds or cards just to avoid further delays.
This was not part of a normal contractor-client workflow.
But we did it because the client had a deadline.
The unit was intended for Airbnb use.
There were guest-related pressures.
There was a target turnover date.
And because the client needed the unit operational, our team pushed hard to meet the scheduleโeven when the process was already strained by revisions, budget limitations, and external building requirements.
The Reality of Condo Renovation
Condo renovation is not like renovating a private house where the contractor can simply work freely.
At SMDC Wind Residences, the project had to comply with building rules, admin coordination, inspections, working-hour restrictions, and engineering requirements.
Bathroom works, in particular, were affected by admin and engineering processes such as waterproofing concerns, flood testing, and inspection availability.
These were not matters fully within the contractorโs control.
Yet when delays happen, the contractor often becomes the easiest target.
That is one of the hardest truths in condo renovation: even if the delay is caused by admin approval, inspection schedules, building restrictions, supplier lead time, or client-side revisions, the contractor is often expected to absorb the blame.
The Goodwill That Became Expected
Throughout the project, we provided multiple accommodations.
We entertained extended design discussions.
We revised layouts repeatedly.
We assisted with procurement.
We helped coordinate old furniture concerns.
We considered additional inclusions even when budget was tight.
We requested worker stay-in arrangements to accelerate the work.
We returned to the site multiple times for concerns and punch-list items.
We continued responding, coordinating, documenting, and trying to close the project professionally.
But instead of being treated as goodwill, many of these accommodations slowly became treated as obligations.
That is where the relationship became unhealthy.
A contractor can be patient.
A contractor can be flexible.
A contractor can be generous.
But generosity should not be weaponized into endless liability.
Turnover, Punch List, and the 10% Retention
The project eventually reached turnover and punch-list stage.
The client retained the final 10% payment, amounting to โฑ133,000, for remaining punch-list concerns.
That is understandable in principle. Retention exists to protect the client while final items are being completed.
But retention must also be fair.
It should apply to actual remaining items within the original scope.
It should not become an unlimited fund.
It should not become a tool to reopen the entire project.
It should not be used to demand a near-total rework of the unit.
The original punch-list stage involved close-out and finishing concerns: gaps, caulking, sealant, grout, paint inconsistencies, cabinet alignment, minor electrical finishing, and fixture mounting concerns.
These are punch-list items.
They are not equivalent to rebuilding the entire condominium.

Remaining Punch List (Client-Provided): This file contains the remaining punch list items submitted by the client during project close-out. Please note that our team no longer has access to the original master file where updates, completed corrections, and item statuses were tracked. As such, this copy may not reflect items that were already corrected, resolved, or closed.
From โฑ133,000 Retention to a โฑ703,000 Demand
This is where the situation became deeply concerning.
The client later chose to engage another contractor. Based on the written close-out discussion, any third-party rectification should have been limited to remaining original-scope items and deductible only from the 10% retention, or โฑ133,000.
Instead, the claim expanded into a โฑ703,000 third-party quotation.
That quotation reportedly covered 68 items and included broad scopes such as full repainting of the condominium, full sealant removal and reapplication, extensive cabinetry and carpentry works, tile and fixture replacement, electrical works, plumbing works, and miscellaneous rectification.
That is no longer a narrow punch-list.
That is a broad whole-unit rectification package.
And from our position, that is not fair, proportionate, or aligned with the agreed close-out framework.
A โฑ133,000 retention cannot reasonably become a โฑ703,000 claim unless there is clear, documented, contract-based justification.
We do not believe that exists here.
The Pattern We Can No Longer Ignore
This project taught us a painful lesson.
There are clients who ask for flexibility.
Then ask for more.
Then ask for revisions.
Then ask for urgent delivery.
Then ask for free assistance.
Then ask for special accommodations.
Then use the remaining punch-list stage to expand the standard of acceptance.
Then claim the project is incomplete while the unit is already being used or prepared for business.
Then attempt to charge the contractor far beyond the agreed retention.
We are not saying every concern was invalid.
No renovation project is perfect. Punch-list items are normal. Corrections are part of construction. We acknowledge that there were items that needed close-out.
But what we cannot accept is the expansion of a close-out process into a disproportionate financial demand.
We cannot accept a situation where months of goodwill, free revisions, extra coordination, procurement assistance, and repeated site visits are erasedโand the story is rewritten as if the contractor simply failed to deliver.
That is not the full truth.
The Bigger Lesson for Clients and Contractors
For clients, this is a reminder: budget and expectations must align.
You cannot demand premium-level results, unlimited revisions, urgent timelines, free extras, and full-service project management while staying below basic package pricingโand then expect the contractor to absorb every limitation, delay, and change.
For contractors, this is a reminder: protect your process.
Put limits on revisions.
Document every change.
Charge for additional work.
Do not absorb too much.
Do not allow goodwill to replace proper variation orders.
Do not let kindness become a loophole.
And most importantly, never allow a clientโs shifting expectations to become your open-ended liability.
Our Stand
YourSpacebyLA remains committed to professionalism, fairness, and proper close-out.
We believe in accountability.
We believe in correcting legitimate punch-list items.
We believe in honoring contracts.
But we also believe that clients must honor the same contracts.
The remaining retention was โฑ133,000.
Any proper deduction should be limited to actual remaining original-scope items, properly documented, and fairly valued within that retention framework.
A โฑ703,000 broad rectification demand is, in our position, excessive and unsupported by the projectโs documented close-out stage.
This is not just about one project.
This is about protecting small design-build teams from being pressured into silence when goodwill is abused.
This is about telling the full story.
Because behind every beautiful renovation is a team that designs, coordinates, lifts, drives, sources, measures, negotiates, documents, revises, repairs, explains, and carries the emotional weight of every client expectation.
And sometimes, the hardest project is not the one with the most complicated design.
It is the one where the budget is basic, the expectations are premium, the revisions are endless, the deadline is urgent, and the appreciation disappears the moment the final payment is due.
This is the story of the Wind Residences project.
And this is why we will no longer let goodwill be mistaken for weakness.









